MIRA
INFORM REPORT
|
Report Date : |
09.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
HUZHOU AXIANG IMPORT & EXPORT CO., LTD. |
|
|
|
|
Registered Office : |
No. 1141-1143
Longwangshan Road, Huzhou, Zhejiang Province 313000 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
19.02.2009 |
|
|
|
|
Com. Reg. No.: |
330500000008750 |
|
|
|
|
Legal Form : |
Limited Liabilities Company |
|
|
|
|
Line of Business : |
International
Trade |
|
|
|
|
No. of Employees : |
07 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
china - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010
China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, creation of a diversified banking system, development of stock
markets, rapid growth of the private sector, and opening to foreign trade and
investment. China has implemented reforms in a gradualist fashion. In recent
years, China has renewed its support for state-owned enterprises in sectors it
considers important to "economic security," explicitly looking to
foster globally competitive national champions. After keeping its currency
tightly linked to the US dollar for years, in July 2005 China revalued its
currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2010 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic
development has progressed further in coastal provinces than in the interior,
and by 2011 more than 250 million migrant workers and their dependents had
relocated to urban areas to find work. One consequence of population control
policy is that China is now one of the most rapidly aging countries in the
world. Deterioration in the environment - notably air pollution, soil erosion,
and the steady fall of the water table, especially in the North - is another
long-term problem. China continues to lose arable land because of erosion and
economic development. The Chinese government is seeking to add energy
production capacity from sources other than coal and oil, focusing on nuclear
and alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to near 9% for 2011. An economic slowdown in Europe is expected to
further drag Chinese growth in 2012. Debt overhang from the stimulus program,
particularly among local governments, and a property price bubble challenge
policy makers currently. The government's 12th Five-Year Plan, adopted in March
2011, emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent on exports in the
future. However, China has made only marginal progress toward these rebalancing
goals.
|
Source : CIA |
Company name & address
Huzhou Axiang Import
& Export Co., Ltd.
no. 1141-1143 longwangshan road, huzhou
ZHEJIANG PROVINCE 313000 PR CHINA
TEL: 86 (0) 572-2212968
FAX: 86 (0) 572-2100636
EXECUTIVE SUMMARY
Date of Registration : FEBRUARY 19, 2009
REGISTRATION NO. : 330500000008750
LEGAL FORM : Limited liabilities company
REGISTERED CAPITAL : cny 36,000,000
staff : 7
BUSINESS CATEGORY : TRADING
Revenue :
CNY 178,504,000 (AS OF DEC. 31,
2011)
EQUITIES :
CNY 10,948,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
MARKET CONDITION : AVERAGE
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.36 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
LEGAL STATUS & HISTORY
SC was
established as a limited liabilities company of PRC with State Administration
of Industry & Commerce (SAIC) under registration No.: 330500000008750 on February
19, 2009.
SC’s Organization Code Certificate
No.: 68454723-3
SC’s Tax No.: 330501684547233
SC’s registered capital: cny 36,000,000
SC’s paid-in capital: cny 36,000,000
Registration Change Record:-
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2012 |
Paid-in Capital |
CNY 10,000,000 |
cny 36,000,000 |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Zhejiang Zhenxing Axiang Group
Co., Ltd. |
70 |
|
Chen Lihong |
10 |
|
Bai Honghua |
10 |
|
Zhou Yanfeng |
10 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and
Chairman |
Pan
Axiang |
|
General Manager |
Li Hanzhong |
|
Director |
Chen Lihong |
|
Zhou Yanfeng |
|
|
Supervisor |
Chen Genhua |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Zhejiang Zhenxing Axiang Group
Co., Ltd. 70
Chen Lihong 10
Bai Honghua 10
Zhou Yanfeng 10
Zhejiang Zhenxing Axiang Group Co.,
Ltd.
---------------------------------------------------------
Date of Registration: June 20, 1996
Registration No.: 330500000000292
Legal Form: Limited
Liabilities Company
Registered Capital: CNY 160,000,000
Address: No.2 Fumin South Road, Zhili Town,
Huzhou, Zhejiang Province
Tel: 86 0572-3182111
Fax: 86 0572-3182788
Web: www.axiang.com
MANAGEMENT
Pan
Axiang , Legal
Representative and Chairman
--------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 61
Ø
ID# 330501195111165119
Ø
Qualification:
University
Ø
Working
experience (s):
From 2009 to present, working in SC as legal representative and chairman, also working in Zhejiang Zhenxing Axiang Group Co., Ltd., Zhejiang Xinxiang Aluminum Co., Ltd., Zhejiang Axiang Linen Textile Co., Ltd., and Huzhou Asun Solar Co., Ltd. as legal representative
Li Hanzhong, General Manager
-----------------------------------------------------
Ø
Gender: M
Ø
Age: 42
Ø
ID# 330902197003050012
Ø
Qualification:
University
Ø
Working
experience (s):
From 2009 to present, working in SC as general
manager
Director
-----------
Chen Lihong ID#
330501197710250226
Zhou Yanfeng ID#
330501197410145117
Supervisor
--------------
Chen Genhua ID#
330502195603021628
BUSINESS OPERATION
SC’s registered business scope includes importing and
exporting goods and technology; selling textiles, metal materials, building materials,
cultural goods, plastic products, other chemical products, other machinery and
equipment.
SC is
mainly engaged in international trade.
SC’s
products mainly include: metal materials, linen yarn, etc.
SC sources its materials 100% from domestic market, mainly Zhejiang. SC sells 100% of its products to overseas market, mainly USA, Europe, Mid East, Southeast Asia, etc.
The
buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include L/C and Credit of 30-60 days.
*Major Suppliers:
==============
Zhejiang
Xinxiang Aluminum Co., Ltd.
Zhejiang
Axiang Linen Textile Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 7
staff at present.
SC rents an area
as its operating office of approx. 100 sq. meters at the heading address.
RELATED COMPANY
SC is known to have a
subsidiary at present:
n
Zhejiang Axiang Linen Textile Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment and our debt collection record concerning
SC.
Trade payment experience: SC’s suppliers
declined to make any comments.
Delinquent payment record: None in our
database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
Basic Bank:
Agricultural
Bank of China Zhejiang Huzhou Economic Development Zone Sub-branch
AC#:
105101040716680
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
13,304 |
18,784 |
|
|
Notes receivable |
0 |
0 |
|
Accounts
receivable |
22,029 |
25,572 |
|
Advances to
suppliers |
15 |
57 |
|
Other receivable |
0 |
4,480 |
|
Inventory |
0 |
0 |
|
Prepaid
expenses |
4 |
8 |
|
Other current
assets |
6,656 |
5,786 |
|
|
------------------ |
------------------ |
|
Current assets |
42,008 |
54,687 |
|
Fixed assets |
133 |
344 |
|
Construction in
progress |
0 |
0 |
|
Intangible
assets |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
0 |
0 |
|
Other non-current
assets |
8,623 |
8,624 |
|
|
------------------ |
------------------ |
|
Total assets |
50,764 |
63,655 |
|
|
============= |
============= |
|
Short-term loans |
6,983 |
37,627 |
|
Notes payable |
0 |
0 |
|
Accounts payable |
31,922 |
12,973 |
|
Wages payable |
0 |
0 |
|
Taxes payable |
112 |
197 |
|
Advances from
clients |
0 |
0 |
|
Other payable |
103 |
23 |
|
Accrued expenses |
1,263 |
1,868 |
|
Other current
liabilities |
20 |
19 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
40,403 |
52,707 |
|
Non-current
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
40,403 |
52,707 |
|
Equities |
10,361 |
10,948 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
50,764 |
63,655 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2010 |
As of Dec. 31,
2011 |
|
Revenue |
120,040 |
178,504 |
|
Cost of sales |
115,328 |
170,304 |
|
Taxes and surcharges |
135 |
207 |
|
Sales expense |
1,984 |
4,083 |
|
Management expense |
1,454 |
1,522 |
|
Finance expense |
946 |
1,846 |
|
Income from
investment |
153 |
49 |
|
Profit before
tax |
383 |
852 |
|
Less: profit tax |
96 |
259 |
|
287 |
593 |
Important Ratios
=============
|
|
As
of Dec. 31, 2010 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.04 |
1.04 |
|
*Quick ratio |
1.04 |
1.04 |
|
*Liabilities
to assets |
0.80 |
0.83 |
|
*Net profit
margin (%) |
0.24 |
0.33 |
|
*Return on
total assets (%) |
0.57 |
0.93 |
|
*Inventory /
Revenue ×365 |
-- |
-- |
|
*Accounts
receivable/ Revenue ×365 |
67 days |
53 days |
|
*
Revenue/Total assets |
2.36 |
2.80 |
|
* Cost of
sales / Revenue |
0.96 |
0.95 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both
years.
l
SC’s cost of sales is fairly high, comparing with
its revenue.
LIQUIDITY:
AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
SC has no inventory in both years.
l
The accounts receivable of SC is maintained in an
average level.
l
The short-term loans of SC appear large in 2011.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions. The large amount of short-term loans may be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.21 |
|
UK Pound |
1 |
Rs.84.00 |
|
Euro |
1 |
Rs.67.75 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.